How FedEx duties and taxes work

How FedEx Duties and Taxes Work

Duties and taxes on a cross-border shipment are set by the destination country, not by FedEx. For imports into Canada, the Canada Border Services Agency (CBSA) determines them. What FedEx does is clear the shipment through customs and, when it pays the duties and taxes on the payor's behalf, charge a fee for advancing them.

$40 duty/tax free, US/Mexico
$20 duty/tax free, other
3.10% disbursement fee

The amount depends on the product's value, trade agreements, country of manufacture, description and end use, HS code, and the destination's rules, per FedEx's guide to duties and taxes. FedEx shipping rates do not include it. For the rate itself, see FedEx Shipping Rates; for fees like fuel and residential delivery, see FedEx Surcharges & Fees.

Source: FedEx Service Guide, Canadian Edition, effective 11 Sep 2026

Courier duty and tax thresholds

When Duties and Taxes Apply: Courier Thresholds

The thresholds below apply to goods shipped into Canada by courier. They do not apply to a parcel you send abroad, and they are not the rules for mail, which uses a different threshold. Values are value for duty in Canadian dollars, as set by CBSA.

Shipped by courier fromValue for dutyDutyTaxes
U.S. or MexicoUp to $40FreeFree
U.S. or Mexico$40.01 to $150FreeApply
U.S. or MexicoOver $150ApplyApply
Any other countryUp to $20FreeFree
Any other countryOver $20ApplyApply

Alcohol, cannabis products, cigars, cigarettes, tobacco and publications are exceptions. CBSA keeps the current rules on its low-value shipment thresholds page.

One 2026 change cuts across those thresholds. From 8 September 2026, certain U.S.-origin goods carry a surtax of 15%, 25% or 50% of value for duty, on commercial and casual goods alike, and CBSA states that "surtax is applicable on shipments that fall under de minimis thresholds." CBSA's own example: a $150 item at 25% owes $37.50 in surtax plus $9.38 GST, $46.88 in total. CBSA has not stated an end date, so check Customs Notice 26-23 (updated 23 October 2026) before you rely on it.

Source: CBSA, low-value shipment thresholds, modified 25 Nov 2025

Who pays FedEx duties and taxes

Who Pays: Recipient, Sender or Third Party

By default, the recipient pays. When a shipment is created, the sender chooses who is billed for duties and taxes: Bill Recipient, Bill Sender or Bill Third Party, the last two only to specified locations. If the sender doesn't choose, FedEx bills the recipient automatically. Whatever the instructions say, FedEx's terms state that "the sender is ultimately liable" for all charges. In practice, FedEx says, if the recipient refuses the package, or the recipient or third-party account holder refuses to pay, "the original shipper will be billed for duties and taxes."

FedEx can also hold a shipment until it is paid for. FedEx may contact the payor to confirm reimbursement before clearing and delivering a shipment, and may, at its sole discretion, require payment of duties and taxes before releasing it to the recipient. On FedEx Ground, FedEx names who may have to pay at or before delivery: new FedEx Ground customers, customers without a valid account, hotel guests and those with a poor credit history.

If you would rather your customer not face a customs bill, choose Bill Sender where it is available. And if duties were billed to the wrong party, a rebill request must be made within 90 days of the invoice date. The rules are in the FedEx Service Guide.

Source: FedEx Service Guide, Canadian Edition, effective 11 Sep 2026

How to pay FedEx duties and taxes

How to Pay FedEx Duties and Taxes

FedEx gives two ways to pay a duty and tax bill online, and which one you use depends on what you have in hand:

  • No invoice number yet: go to fedex.ca/paynow and pay with your tracking number. FedEx says this covers "charges, including duties, taxes and other related fees."
  • You have a FedEx invoice: go to fedex.ca/payment and pay with your invoice number. This route covers transportation charges as well as duties, taxes and related fees.

Both routes are listed in the Pay Duties and Taxes section of FedEx's duties and taxes page. Paying early is worth it when a shipment is waiting at customs, since FedEx may require payment before it releases a shipment.

Source: FedEx Canada, Duties & Taxes: Pay Duties and Taxes

FedEx clearance and brokerage fees

FedEx Clearance, Brokerage and Entry Fees

When FedEx pays duties and taxes to customs on your behalf, it charges a clearance service fee "based on a flat rate or percentage of the total amount disbursed (whichever is greater)." This is the fee people usually mean by a FedEx "brokerage" or "import" fee. It is separate from the duties and taxes themselves, which go to the government. For shipments into Canada, FedEx publishes the same clearance fees for FedEx Express and FedEx Ground:

FeeAmount (CAD)
Disbursement fee3.10% of the duty and tax advanced, or $12.00, whichever is greater (from 20 July 2026)
Additional line items$5.60 per line over 3 lines
Other Government Agency$17.10 per entry
ROD Fee (FedEx Express)$12.00 plus applicable tax (from 20 July 2026)

Amounts are as of FedEx's 2026 rate changes page. If you use your own customs broker and that broker is in a different metropolitan delivery area from the recipient, FedEx adds a Broker Routing Fee of $30 per shipment on international package and freight services, as of its 2026 rate guide.

Commercial importers who use FedEx Logistics Canada, FedEx's customs brokerage company, see the same rate there: FedEx Logistics assesses a 3.10% disbursement fee for advancing funds to CBSA, effective 19 March 2026, and states that importers who pay CBSA directly "will not incur the 3.10% disbursement fee."

Shipping to the U.S. or EU adds two fees. On FedEx International Ground to the U.S., FedEx can arrange clearance and may charge a Clearance Entry Fee on the duty and tax invoice. An Inbound Processing Fee of $3.70 applies per shipment to the U.S. on international services ($1.50 on International Connect Plus) and per package on FedEx Ground, as of 5 January 2026. Since 3 August 2026 it also applies to all 27 EU member states.

Source: FedEx Canada, 2026 rate changes, last modified 23 Oct 2026

FedEx clearance delays

Clearance Delays and Paperwork

A customs hold changes the delivery date as well as the cost. FedEx's terms state: "Where customs or other regulatory clearances are delayed, our delivery commitment time may be modified by adding one business day for each day (or portion thereof) that such clearances are delayed." FedEx Ground follows the same rule, so a clearance delay pushes the delivery commitment back rather than breaking it.

The most common causes are in the sender's hands. Shipments that need documents beyond the air waybill, such as a commercial invoice, "may require additional transit time", and goods regulated by other government agencies, such as food, health products, plants and telecom equipment, can take longer to clear. The sender is responsible for accurate documents, including the HS code where required. Unpaid duties are the other usual cause: see who pays above.

Corporate importers shipping into Canada by FedEx Ground must show their CRA Business Number with the "RM" import/export account code on the commercial invoice, or the shipment may be detained. The paperwork rules are in the FedEx Service Guide.

Source: FedEx Service Guide, Canadian Edition, effective 11 Sep 2026

CARM and FedEx customs clearance

CARM and Commercial Importers

The CARM Client Portal is how Canadian commercial importers deal with CBSA, and FedEx depends on it. To have FedEx clear your goods, you must:

  • delegate authority to FedEx in the CBSA CARM Client Portal,
  • keep both the account and the delegation from expiring, and
  • post financial security with CBSA where required.

If you don't, FedEx states it "will not be able to perform customs clearance services." FedEx also states that it is not liable for CBSA penalties under the Administrative Monetary Penalty System (AMPS). For importers who need help, FedEx Logistics offers CARM Client Portal registration, setup and account reconciliation as a fee-based service, alongside customs brokerage, free trade certification and duty drawback claims.

Source: FedEx Service Guide, Canadian Edition, effective 11 Sep 2026

Estimate FedEx duties before shipping

Estimate Duties Before You Ship

The best way to avoid a surprise at the border is to know your costs before you commit. Start with Secureship: compare live FedEx rates against every major carrier in seconds, with no FedEx account, so the shipping side of your cost is locked in. For the duties and taxes CBSA adds on top, use the thresholds and clearance fees above alongside a customs duty calculator to see the full landed cost before you ship.

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Frequently Asked Questions About FedEx Duties & Taxes

Who pays FedEx duties and taxes in Canada?

The recipient, unless the sender chooses otherwise. When a shipment is created, the sender picks Bill Recipient, Bill Sender or Bill Third Party for duties and taxes, and if no choice is made, FedEx bills the recipient automatically. Whatever the instructions say, FedEx's terms make the sender ultimately liable for all charges, so a refused shipment can come back to the shipper as a bill. A rebill request must be made within 90 days of the invoice date.


How do I pay FedEx duties online?

FedEx Canada has two online routes. If you do not have an invoice number yet, go to fedex.ca/paynow and pay duties, taxes and related fees with your tracking number. If you have a FedEx invoice, go to fedex.ca/payment and pay with the invoice number, which also covers transportation charges. Both are listed in the Pay Duties and Taxes section of FedEx's duties and taxes page.


Why is my FedEx package held for duties?

Because FedEx can require payment first. FedEx's terms allow it to contact the payor to confirm reimbursement before clearing and delivering a shipment and, at its sole discretion, to require payment of duties and taxes before releasing it. On FedEx Ground, FedEx names who may have to pay at or before delivery: new FedEx Ground customers, customers without a valid account, hotel guests and those with a poor credit history.


What is the FedEx brokerage fee in Canada?

When FedEx pays duties and taxes to customs on your behalf, it charges a disbursement fee for advancing the money: 3.10% of the duty and tax advanced, or $12.00, whichever is greater, since 20 July 2026. The same rate appears for FedEx Express and FedEx Ground. Entries with more than three lines add $5.60 per extra line. These are FedEx's fees, not the government's, and they are separate from the duties and taxes themselves. See the full list in our clearance fees section.


What happens when a FedEx shipment has a clearance delay?

The delivery date moves with it. FedEx's terms add one business day to the delivery commitment for each day, or part of a day, that customs or another regulatory clearance is delayed, on FedEx Express and FedEx Ground alike. Common causes are paperwork and regulated goods: shipments that need documents beyond the air waybill, such as a commercial invoice, may take longer, and so can food, health products, plants and telecom equipment that other government agencies must clear.


Do I pay duties on a FedEx package from the U.S.?

It depends on its value for duty. By courier from the U.S. or Mexico, CBSA charges neither duty nor tax up to $40, tax only from $40.01 to $150, and both above $150. Since 8 September 2026, certain U.S.-origin goods also carry a surtax of 15%, 25% or 50% of value for duty, and CBSA states it applies even below those thresholds. Check CBSA's customs notice for which goods are covered.


Sources

All FedEx charges and rules on this page are sourced from official FedEx documentation. Duty and tax amounts themselves are set by the CBSA and the destination country. Last updated: October 28, 2026.

  • FedEx Service Guide, Canadian Edition, effective 11 September 2026. fedex.com
  • FedEx Express Rates, Canadian Edition, effective 5 January 2026. fedex.com
  • FedEx Canada, 2026 rate changes, last modified 23 October 2026. fedex.com
  • FedEx Canada, duties and taxes, including its Pay Duties and Taxes section. fedex.com
  • CBSA, low-value shipment thresholds. cbsa-asfc.gc.ca
  • CBSA, importing casual goods by courier. cbsa-asfc.gc.ca
  • CBSA, Customs Notice 26-23: United States Surtax Order (2026). cbsa-asfc.gc.ca